All about Used Car Insurance

By Jasper EricksPublished: Friday, June 26th, 2009

There is not much difference in getting a used car insured, and getting a brand-new car insured. There is only one goal in doing either of this: to get protection from liability in case something happens to the vehicle, its occupants, and other motorists.

There is one crucial difference though. Should the used car get damaged or stolen, and considered a total loss, the insurance firm’s losses are lesser than if it were a brand-new model. In this situation, the insurer charges lower rates for comprehensive and collision coverage, decreasing the premium.

It is important to note also that a used car can do as much damage on other vehicles, people, and structures as a new model therefore a car’s age does not affect liability rates.

Most used cars are not as valuable as new ones therefore used car buyers may not want to acquire high coverage for comprehensive and collision insurance. Cheaper premiums provide adequate coverage.

There might be some issues regarding deductible costs. In getting insurance on a car, it is about balancing cost against risk. On used cars, majority of people favor saving money in the present, taking on the risk of spending more in the future should someone file for damage claims.

A person’s driving record will affect the amount of premium he has to pay the insurers for a used car or even a brand-new unit. A few months before buying a car, a driver with a bad driving record that includes having committed driving violations or getting involved in vehicular accidents, should take some extra care. The idea is not to make it worse, as insurers will look into that and base insurance rates on what they find out. There are states that offer classes to help decrease the number of accumulated points on bad driving records.

A car owner’s location of residence and parking arrangements could impact premiums. Someone who has a garage in a suburban area is more likely to get lower insurance premiums than somebody who parks his vehicles on the streets. There are fewer people and vehicles in the suburbs, which decreases the chances of accidents. Insurance companies take this into consideration when calculating rates.

It is also important to choose the type of vehicle to buy, whether it is a used car or a new one, if you are concerned with the insurance you will be getting after purchase. A 1969 Camaro muscle car is likely to get a higher insurance premium because of the type of drivers it generally attracts – the speedster with a sterling record of car crashes.